The Logic of Counterfactuals and the Epistemology of Causal Inference

The 2021 Nobel Prize in Economics recognizes a type of causal model known as the Rubin causal model, or potential outcome framework, which deserves far more attention from philosophers than it currently receives. To spark philosophers' interest, I develop a dialectic connecting the Rubin causal model to the Lewis-Stalnaker debate on a logical principle of counterfactuals: Conditional Excluded Middle (CEM). I begin by playing good cop for CEM, developing a new argument in its favor -- a Quine-Putnam-style indispensability argument. This argument is based on the observation that CEM seems to be indispensable to the Rubin causal model, which underpins our best scientific theory of causal inference in health and social sciences -- a Nobel Prize-winning theory. Indeed, CEM has long remained a core assumption of the Rubin causal model, despite challenges from within the statistics and economics communities over twenty years ago. I then switch sides to play bad cop for CEM, undermining the indispensability argument by developing a new theory of causal inference that dispenses with CEM while preserving the successes of the original theory (thanks to a new theorem proved here). The key, somewhat surprisingly, is to integrate two approaches to causal modeling: the Rubin causal model, more familiar in health and social sciences, and the causal Bayes net, more familiar in philosophy. The good cop/bad cop dialectic is concluded with a connection to broader philosophical issues, including intertheory relations, the revisability of logic, and the role of background assumptions in justifying scientific inference.